FCX's Project Pipeline: Can Expansions Power the Next Growth Wave?

Freeport-McMoRan Inc. FCX remains focused on strong execution and advancing its organic growth opportunities. Its expansion projects aim to boost production capacity, backed by a strong financial health.

FCX is evaluating a large-scale expansion at El Abra in Chile to define a large sulfide resource that could potentially support a major mill project similar to the large-scale concentrator at Cerro Verde. Freeport is also conducting pre-feasibility studies (expected to be completed in 2026) in the Safford/Lone Star operations in Arizona to define a significant sulfide expansion opportunity. It also has expansion opportunities at Bagdad in Arizona to more than double the concentrator capacity of the operation. 

Also, PT Freeport Indonesia (PT-FI) substantially completed the construction of the new greenfield smelter in Eastern Java during 2024, with the start-up commencing in the second quarter of 2025. The first production of copper anode was achieved in July 2025. PT-FI is also developing the Kucing Liar ore body within the Grasberg district with a targeted commencement of production by 2030. Gold production also commenced at the new precious metals refinery in late 2024. 

Plans are in place to transition PT-FI’s existing energy source from coal to natural gas, which is expected to reduce greenhouse gas emissions at Grasberg significantly. 

FCX’s organic growth pipeline, designed to expand capacity and output, positions itself well to benefit from future demand growth. Effective execution of these projects will strengthen its ability to drive shareholder value.

Among FCX’s peers, Southern Copper Corporation SCCO has a strong pipeline of world-class copper greenfield projects and various other promising opportunities. Southern Copper’s capital investment program for this decade is more than $15 billion. This includes investments in El Pilar and El Arco projects in Mexico and the Tia Maria, Los Chancas and Michiquillay projects in Peru. Southern Copper continues to build its presence in Peru as the country is the second-largest producer of copper. 

BHP Group Limited BHP continues to strengthen its portfolio to focus on commodities, including copper. In Chile, BHP has several key projects, which can grow copper production to average roughly 1.4 million tons per annum (Mtpa) through the 2030s. BHP is investing in its 100% owned Copper South Australia asset, focusing on all three operations. BHP also has a 45% interest in the Resolution Copper Project in the United States, one of the largest undeveloped copper projects in the world.

The Zacks Rundown for FCX

Shares of Freeport-McMoRan are up 16.5% year to date against the Zacks Mining - Non Ferrous industry’s rise of 5.3%.

From a valuation standpoint, FCX is currently trading at a forward 12-month earnings multiple of 20.87, a modest 5.9% premium to the industry average of 19.71X. It carries a Value Score of B.

The Zacks Consensus Estimate for FCX’s 2025 and 2026 earnings implies a year-over-year rise of 18.2% and 34.4%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

FCX stock currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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